What
Shares of Applied Materials (AMAT +0.42%) rose 10% last month, according to data provided by S&P Global Market Intelligence, after the company reported record revenue and earnings in its fiscal second quarter 2017.
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So what
Applied Materials investors were happy to see the company post another earnings per share record -- the company's fourth consecutive quarter of doing so -- of $0.76 per share, an increase of 162% year over year.
Those earnings came from record revenue of $3.55 billion in the quarter, a 45% jump from the year-ago quarter.
"Applied Materials delivered the highest quarterly revenue and earnings in our history, and we've now set new earnings records for four quarters in a row. Across the company we have tremendous momentum as our markets are strong and getting stronger, and we're sustainably growing faster than these markets by expanding our served opportunity and gaining share," Applied Materials CEO Gary Dickerson said in press release.
In addition to its record-setting quarter, Applied Materials also ended the second quarter with $898 million in cash.
Now what
Applied Materials' management expects third-quarter revenue in the range of $3.6 billion to $3.75 billion, which would represent a nearly 30% year-over-increase at the midpoint. The company also forecast EPS in the range of $0.79 to $0.87 for the third quarter, which would represent a nearly 66% year-over-year increase at the midpoint.
On the company's second-quarter earnings call, Applied Materials CFO Robert Halliday gave a rosy outlook for the the company's future: "To summarize: one, our markets are sustainably better than at any other time in the history of the company; two, our competitive position and execution is sustainably better, giving us a strong pipeline of new and disruptive products and gross margin expansion; three, this growth, combined with disciplined investment and spending, is generating higher free cash flow, and we are committed to returning the excess to our shareholders."
